GULFPORT, MS (January 22, 2008) - Hancock Holding Company (NASDAQ: HBHC) today announced earnings for the fourth quarter ended December 31, 2007. Hancock's fourth quarter 2007 earnings were $16.6 million, while net earnings for the year ended December 31, 2007, were $73.9 million. Diluted earnings per share were $0.53 for the fourth quarter and were $2.27 for the year.

     Hancock's fourth quarter results were impacted by several unusual charges. As announced in the third quarter press release, the Company committed to an immediate action plan to reduce operating costs across all aspects of operations. As part of this initiative, the Company recorded $1.1 million in severance charges in the fourth quarter related to the elimination of 50 positions, yielding approximately $2.6 million in annualized pre-tax savings. In addition, 39 vacant positions were eliminated, which will yield an additional annualized pre-tax savings of $1.1 million. Also in the quarter, the Company recorded a $2.5 million pre-tax charge to earnings for liabilities relating to the Visa USA, Inc., anti-trust lawsuit settlement with American Express and other pending Visa litigation (reflecting Hancock's share as a Visa member). The Company expects that proceeds from an anticipated share redemption related to its ownership interest in Visa's planned initial public offering will more than offset its recorded Visa-related liabilities.

     Excluding the aforementioned unusual charges, net income for the fourth quarter of 2007 would have been $19.1 million, with diluted earnings per share of $0.60, an increase of $1.4 million, or $0.05 per share over the third quarter of 2007. Net income for 2007 (also excluding the aforementioned unusual charges) totaled $76.4 million with diluted earnings per share of $2.35. Net income for 2006, after excluding certain one-time items (such as the reversal of $20.0 million from the storm-related allowance for loan losses) was $88.9 million, with diluted earnings per share of $2.67.

     Chief Executive Officer Carl J. Chaney commented on Hancock's fourth quarter results, "The Company's plan of action to reduce operating expenses was implemented in the fourth quarter and yielded immediate results in eliminating 89 positions, saving the company approximately $3.7 million in future annual operating expenses. Executive management and our board are especially pleased the Company was able to report no major credit quality issues for the quarter. The Company's traditional focus on sound underwriting and strong credit culture has served our shareholders' interests well in these times when many other banks are reporting significant credit issues."

     Highlights and key operating items from Hancock's fourth quarter earnings are as follows:

• Net Income and Returns: Hancock's adjusted net income for the fourth quarter of 2007 was $19.1 million, compared to $17.7 million for the prior quarter, an increase of $1.4 million, or 8 percent. Return on average assets (adjusted) for the quarter was 1.28 percent, compared to 1.21 percent for 2007's third quarter. Return on average common equity (adjusted) was 13.48 percent compared to 12.58 percent for the prior quarter.

• Net Charge-offs and Non-performing Assets: Net charge-offs for the fourth quarter of 2007 were $2.4 million, or 0.26 percent of average loans, up $490 thousand from the $1.9 million, or 0.21 percent of average loans, reported for the third quarter of 2007. The majority of the increase in net charge-offs as compared to the third quarter was reflected in indirect auto loans and in Hancock's consumer finance subsidiary. However, charge-off levels in both of these areas are below industry averages. Net charge-offs for the fourth quarter for all commercial and mortgage loans were a net recovery of $58 thousand. Non-performing assets as a percent of total loans and foreclosed assets was 0.43 percent at December 31, 2007, compared to 0.28 percent at September 30, 2007. The Company did report an increase in non-accrual loans of $4.6 million and additional ORE of $1.0 million. During the fourth quarter, the Company conducted a thorough review of the loan portfolio and decided to place seven credits on non-accrual status. These seven credits were primarily residential construction and development loans. Loans 90 days past due or greater (accruing) as a percent of period end loans increased only 1 basis point from September 30, 2007, to 0.12 percent at December 31, 2007.

• Allowance for Loan Losses: Hancock recorded a provision for loan losses of $3.6 million in the fourth quarter which, when combined with the quarter's net charge-offs of $2.4 million, resulted in the $1.2 million increase in the allowance for loan losses between September 30, 2007, and December 31, 2007. This increase was necessary to adjust the allowance to the level dictated by the Company's reserving methodologies. The Company's allowance for loan losses was $47.12 million at December 31, 2007, up $1.2 million from the $45.90 million reported at September 30, 2007. The ratio of the allowance for loan losses as a percent of period-end loans was 1.31 percent at December 31, 2007, unchanged from the 1.31 percent reported at September 30, 2007.

• Loans: For the quarter ended December 31, 2007, Hancock's average total loans were $3.6 billion, which represented an increase of $373.0 million, or 12 percent, from the quarter ended December 31, 2006. Period-end loans were up $83.3 million, or 2 percent, compared to September 30, 2007. Average total loans were up $103.8 million, or 12 percent annualized, from the third quarter of 2007. Of that increase, approximately $38 million of growth was in Mississippi, $54 million in Louisiana, $11 million in Alabama, and $1 million in Florida. The majority of the increase in average loans, compared to last quarter, was in commercial purpose loans (approximately $72.4 million).

• Deposits: Period-end deposits for the fourth quarter were $5.0 billion, down $21.5 million, or 0.43 percent, from December 31, 2006, but were up $10 million, or 0.20 percent, from September 30, 2007. Average deposits were up $4 million, or 0.28 percent annualized, from the third quarter of 2007. The increase in average deposits was in time deposits (up $84.2 million). This increase was offset by decreases in public fund deposits (down $28.3 million), interest-bearing transaction deposits (down $42.8 million), and non-interest bearing deposits (down $9.4 million).

• Net Interest Income: Net interest income (te) for the fourth quarter decreased $1.4 million, or 3 percent, from the fourth quarter of 2006, but was up $408 thousand from the third quarter of 2007, or 3 percent annualized. The Company's net interest margin (te) was 4.04 percent in the fourth quarter, 2 basis points narrower than both the same quarter a year ago and the previous quarter. Compared to the same quarter a year ago, the primary driver of the $1.4 million decrease in net interest income (te) was a $104 million, or 1.9 percent, decrease in average earning assets mainly from a reduction in total borrowings of $19.1 million, or 6 percent, and a decrease in average deposits of $33.5 million, or 1 percent. The higher level of net interest income (te) in the fourth quarter compared to the third quarter was due mostly to a decrease in the Company's funding costs, which were down 7 basis points. The total cost of funds was down due to a decrease in the rate paid on interest bearing deposits (down 13 basis points), primarily in public fund deposits (down 55 basis points), and interest bearing transaction deposits (down 22 basis points). There was an unfavorable change in the fourth quarter's funding mix - higher levels of more costly time deposits and lower levels of transaction deposits. However, the impact of the change on net interest margin was managed by reducing the rates paid on the interest bearing deposits and public fund deposits.

• Non-interest income: Non-interest income for the fourth quarter was up $3.7 million, or 13.5 percent, compared to the same quarter a year ago and was up $770 thousand, or 3 percent, compared to the previous quarter. The primary factors impacting the higher levels of non-interest income (excluding securities transactions) as compared to the same quarter a year ago, were higher levels of service charge income (up $1.8 million, or 19 percent) and trust revenue (up $570 thousand, or 16 percent), investment and annuity fees (up $979 thousand), and ATM fees (up $325 thousand). The increase in non-interest income (excluding securities transactions) for the fourth quarter compared to the prior quarter was due to increases in insurance fees (up $1.3 million or 31 percent), trust fees (up $302 thousand), investment and annuity fees (up $245 thousand), ATM fees (up $106 thousand), which were mostly offset by reductions in other income (down $1.2 million or 26 percent), and secondary mortgage market operations (down $174 thousand).

• Operating expense: Operating expenses for the fourth quarter (adjusted to exclude severance and VISA charges) were $4.5 million, or 9 percent, higher compared to the same quarter a year ago and was $.6 million, or 2 percent, lower than the previous quarter. Much of the expense increase from last year was related to ongoing recovery and rebuilding efforts on the part of the Company as well as expansions into the Mobile, New Orleans, and Pensacola markets. The increase from the same quarter a year ago was reflected in higher levels of occupancy expense (up $2.8 million) and personnel expense. The decrease in operating expense (adjusted) from last quarter was due to higher levels of occupancy expense (up $1.4 million) and other operating expense (up $.7 million), offset by a reduction in personnel expense (down $2.9 million) and equipment expense (down $204 thousand). Full-time equivalent headcount at December 31, 2007, was down 78 from September 30, 2007, but was up 41 compared to December 31, 2006.

Update on Expense Control Efforts

     The Company remains focused on the need to control expenses and ensure that shareholder value is received for each dollar expended. A total of 89 positions were eliminated during the fourth quarter through a process of focusing on operational efficiency. These efforts will result in annualized pre-tax cost savings beginning in 2008 of approximately $3.7 million. In addition, the Company is continuing efforts to reduce costs and has implemented programs which will begin realizing tangible benefits in first quarter 2008.

     Chief Executive Officer John M. Hairston stated, "We are pleased with the progress to date on the Company's cost control initiatives and thank all associates for the tough decisions and sacrifices thus far. We also remain excited at the opportunity to maintain top quartile performance levels in 2008."

Update on Market Expansion

     Hancock continues to be focused on expansion in markets the Company believes have a high potential for increasing shareholder returns, namely Mobile, Pensacola, and New Orleans. Three branches will open in permanent facilities in Mobile by the end of first quarter 2008. In addition, another branch will open in a temporary facility in Mobile before the end of second quarter 2008. The company will open a second Pensacola location by the end of first quarter 2008 and in December 2007, Hancock opened its first branch in the Central Business District of New Orleans. Hancock has also recently opened a corporate trust office in Orlando, Florida.

     Chief Executive Officer John M. Hairston added, "The Company continues to invest in high-potential markets - primarily Mobile, Pensacola and New Orleans - with early returns in all three markets favorable."

Stock Repurchases

     Approximately 541,000 of the Company's shares were repurchased during the fourth quarter of 2007 under the Stock Repurchase Plan that was approved in 2000. This plan was completed during the fourth quarter. The board of directors approved the 2007 Stock Repurchase Plan at its November meeting. This plan authorizes the repurchase of 3,000,000 shares. Approximately 11,000 of the Company's shares were repurchased during the fourth quarter of 2007 under this plan. The Company has repurchased 1,556,000 shares through December 31, 2007, compared to 39,000 shares during the 12 months of 2006. Subject to market conditions, repurchases will be conducted solely through a Rule 10b5-1 repurchase plan. Shares purchased under this program will be held in treasury and used for general corporate purposes as determined by Hancock's board of directors. Management intends to continue repurchasing shares as long as market conditions are conducive to that action.

About Hancock Holding Company & Hancock Bank

     Hancock Holding Company - parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, Hancock Bank of Florida, and Hancock Bank of Alabama - has assets of approximately $6.1 billion. Founded October 9, 1899, Hancock Bank consistently ranks as one of America's strongest, safest financial institutions according to Veribanc, Inc., and BauerFinancial Services, Inc. Thomson Financial also listed Hancock as the ninth largest corporate trustee bank in the U.S. More corporate information and online banking are available at www.hancockbank.com.

Financial Highlights Part 1 | Financial Highlights Part 2 | Financial Highlights Part 3

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about companies' anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects the companies from unwarranted litigation if actual results are different from management expectations. This release contains forward-looking statements and reflects management's current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could cause the Company's actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements.

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For More Information
Carl J. Chaney, Chief Executive Officer
John M. Hairston, Chief Executive Officer
Michael M. Achary, Chief Financial Officer
Paul D. Guichet, Investor Relations
800.522.6542 or 228.563.6559